Bill 572/21 is currently being analyzed by the Chamber of Deputies. It aims to establish a monthly emergency aid of R$500.00, along the lines of the benefit established in 2020 by Law No. 13,982. To finance the project, to be paid by December 31, 2021, the text provides for the taxation of dividends by Income Tax.

The proposal establishes that profits or dividends paid or credited by legal entities will be subject to the levy of the Income Tax and will integrate the calculation basis of the income of beneficiaries residing in the country or abroad.

There is also provision for funding the program by: half of the Central Bank's profits from foreign exchange operations; revenue obtained from PIS and COFINS taxation on luxury items, and 10% of the current tax waivers granted by the federal government.

According to the author of the bill, Congressman André Janones (Avante-MG), taxation on dividends could yield almost R$1,600 million, according to calculations by Unafisco, the association of Federal Revenue auditors. The R$1,010 million cut in tax breaks will represent at least R$1,330 million this year.

The project, which is being processed conclusively – a procedure that dispenses with deliberation in the Plenary – will be analyzed by the following Committees: Social Security and Family; Finance and Taxation; Constitution and Justice and Citizenship.

Our team closely monitors the legislative progress of tax matters and is available for any additional clarifications.